Trusts and Estates Registration Deadline Extended

Trusts and complex estates with tax liabilities or reportable events in 2016/17 are normally required to notify HMRC of this by 5 October 2017.

HMRC have now announced that as part of the introduction of the new online Trusts and Estates Register, this deadline has been extended to before 5 December 2017.

Trusts and Estates Register

The new online register for trusts and complex estates is being introduced as part of the EU’s Fourth Anti-Money Laundering Directive.

The new register is designed to streamline the process by which trustees and personal representatives notify HMRC about their trust/estate. Previously this process was done by paper. The new service is also aimed at making it easier for details to be updated regularly.

Only complex estates will need to register under this new initiative. Estates that aren’t complex will be able to settle their tax liabilities with HMRC through informal procedures.

See our previous blog on estates to find out more about the criteria for complex estates and informal procedures.

At the time of writing, only trustees and personal representatives can use this register, however HMRC have said they will have facilities for registration by agents ready in October 2017.

After feedback from agents and stakeholders HMRC have now extended the deadline for new trusts and complex estates to the 5 January 2018. ‘New’ trusts and estates include those which have incurred a liability to tax for the first time in the tax year 2016/17.

HMRC have also clarified that the deadline for existing trusts and estates to register will be the 31 January 2018 however HMRC will not impose a penalty were the registration takes by 5 March 2018.